Georgi Georgiev


The purpose of this publication is to provide academics and SME managers with the most commonly used modern approaches to measuring and managing business risk. The Local Sensitivity Analysis and Cash Flow Risk (CFaR) algorithms are presented in detail using practical examples. Cash flow at risk is calculated using the bottom-up approach using the Monte Carlo simulation. The risk factors of business risk model are simulated using triangular, normal and even distribution. The mathematical simulation algorithm is programmed in the Excel environment using built-in functions. 


business risk, local sensitivity analysis, cash flow at risk, CFaR, Monte Carlo simulation, triangular distribution, normal distribution, uniform distribution, data table

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